like a said expensive cars. that price suggests to a family clearly and is probably a 5 passenger car and most families are middle class and the .99 seems cheap. now if you buy a ferrari obviously its gonna be different

The whole point of $9.99, three payments of $15.99, blah blah blah is completely for appeal only. When an average person looks at a price of $4.99 they're going to say, "Holy **** $4." When in reality it's $5.

Marketing branches of most major corporations hire market psychologist that specialize in the consumer mind. They think up the best ways to sell a product. One way is by discounting the price only slightly. Believe it or not we fall for it every day. For example, you could by winter fresh gum for $2.00 or orbit for $1.89. the ten cent difference, although minuscule is noticeable by the human psyche and commonly chosen while people are shopping in passing. It is for this reason that all the cheap toys, trinkets, and gift cards are placed at the checkout. You would usually be in the mood to leave, but the discounted price catches your attention.

That's the difference between $2.00 and $1.89, as opposed to $2.00 and $1.99. Of course you'll go for the $1.89, as you can save 10 cents, which can actually be useful. 1 cent is very, very rarely helpful at all.

the key numbers are $0.89 and $0.99. 89 is the agreed number that market divisions use to mean its affordable, while 99 is used to show quality. Which is why most brand names use 99 and generics use 89

Ok...I could be very wrong about this...but I think that the only reason why things are priced this way is not because of psychological reason. But only so that pennies can also be used in circulation. Took a shot. Am I wrong?

It was useful many years ago when cashiers werent double checked by machines and therefore could lie as to what the change was and shorthand the customer and pocket a few cents for themselves. 19.99 made it abundantly clear to the customer that he should be expecting at least one penny back and force the cashier to open the cash register and give change.